You Have Recently Come Across a Rather Large Amount of Money

question 17

Essay

You have recently come across a rather large amount of money. Because you have just finished the financial math lectures in your college math class, you decide that you should invest the money in a long-term CD (certificate of deposit). The financial section of your local paper has the following advertisements.
Countryside Credit Union
- 10 year CD with an APR of 5.44 % compounded monthly.
Northeast Bank and Trust
- 10 year CD with an APR of 5.43 % compounded continuously.
Which institution is offering a better deal? Explain.